Winter 2012
ME 305
Instructor: Vahe Lskavyan
HW#5
DUE BY 12PM, FRIDAY, MARCH 9 (SLIDE UNDER MY OFFICE THE DOOR IF I AM OUT)
The Competitive Firm and the Competitive Market
1. TRUE or FALSE? EXPLAIN!
a. In a competitive industry with identical firms, long
CHAPTER 3
Quantitative Demand Analysis
The Elasticity Concept
If the price of the product increases, we know by the law of demand that quantity demanded for that
product will decreases (holding everything else constant).
How much revenue changes depend on
HW#1 ANSWERS
1. TRUE OR FALSE? EXPLAIN BRIEFLY!
a. If the interest (discount) rate is 10% and cash flows are $440 at the end of year one and $1210
at the end of year two, then the present value of these cash flows is $1400.
TRUE
440
1210
400 1000 1400
(1
Winter 2012
ME 305
Instructor: Vahe Lskavyan
HW#5
ANSWERS
The Competitive Firm and the Competitive Market
1. TRUE or FALSE? EXPLAIN!
a. In a competitive industry with identical firms, long run equilibrium is characterized by
P=MR=MC=AC (explain briefly wh
Winter 2012, ME305
Instructor: Vahe Lskavyan
MidTerm Exam #1
Finish by 5PM. Do all problems. Read problems carefully. Provide concise but complete answers.
Explanations without answers will lose points. Closed book. Manage time efficiently.
1. (6 POINTS)
ME 305
1.
HW#4
ANSWERS
Instructor: Vahe Lskavyan
TRUE or FALSE? EXPLAIN! DRAW WHEN APPROPRIATE!
a. The combinations of inputs that produce a given level of output are depicted by Indifference
curves.
FALSE: The combinations of inputs that produce a given
Winter 2012
Econ 305
1.
Vahe Lskavyan
CHAPTER 3 PROBLEMS
ANSWERS
TRUE or FALSE. Explain! Use graphs if necessary.
a. The demand for gasoline from Guss gas station is more (price) elastic than the demand for gasoline
in general.
TRUE: There are more close
MEFinal Sample Test
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. The figure below shows the payoff to two airlines, A and B, of serving a particular route.
If the two airlines must decide simultaneously
Managerial Economics mcHW10: Chapter 12 (Perloff/Brander)
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. In game theory, a strategy
A. is useful in static games, but not in dynamic games.
B. is useless, b
Managerial Economics mcHW11: Chapter 13 (Perloff/Brander)
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. In a repeated prisoners' dilemma game
A. firms' choices are not influenced by their opponents' acti
Managerial Economics mcHW4: Chapter 6 (Perloff/Brander)
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Sarah earns $40,000 per year working for a large corporation. She is thinking of quitting this job to
ECON 3050 Exam 2 Study Guide
Q&A
Mod 2 Lecture 5 Ch 8 Questions Competitive Firms and
Markets
1. In a competitive market, if buyers did not know all the prices charged by the many firms
A. firms sell a differentiated product.
B. the number of firms will m
Managerial Economics mcHW8: Chapter 10 (Perloff/Brander)
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. When firms price discriminate they turn _ into _.
A. producer surplus, consumer surplus
C. consumer
ECON 3050 Exam 2 Study Guide
Q&A
Mod 2 Lecture 5 Ch 8 Questions Competitive Firms and
Markets
1. In a competitive market, if buyers did not know all the prices charged by the many firms
A. firms sell a differentiated product.
B. the number of firms will m
Managerial Economics mcHW9: Chapter 11 (Perloff/Brander)
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Each member of a cartel
A. is operating illegally in every country in which it is doing business.
B.
Sample Questions for the Final Exam
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Common knowledge in game theory
A. is information known by all players.
B. is required for static games.
C. does not impa
Managerial Economics mcHW5: Chapter 7 (Perloff/Brander)
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. A _ is a governance structure where owners are usually have limited liability.
A. partnership
C. corp
Managerial Economics (Prof. Bolong Cao) MT2 Sample Exam Questions
MEMT2SampleQs
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. In a competitive market, if buyers did not know all the prices charged by the
Managerial Economics mcHW7: Chapter 9 (Perloff/Brander)
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. For a monopoly, marginal revenue is less than price because
A. the firm has no supply curve.
B. the d
Managerial Economics mcHW12: Chapter 14 (Perloff/Brander)
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Your friend Dimitre tells you that he thinks that his favorite basketball team has a 70% chance of
Managerial Economics mcHW2: Chapter 2 (Perloff/Brander)
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Consumers have been buying fewer CDs as downloadable music has become easier to purchase and use.
We
Managerial Economics mcHW3: Chapter 3.1 (Perloff/Brander)
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. If the price of orange juice rises 10%, and as a result the quantity demanded falls by 8%, the pric
Managerial Economics mcHW6: Chapter 8 (Perloff/Brander)
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Firms that exhibit pricetaking behavior
A. take pricing behavior in their own hands.
B. are independ
Sample Questions for the Final Exam
Lecture 9 Chapter 12 Game Theory and Business Strategy
(1 49)
1. Common knowledge in game theory
A. is information known by all players.
B. is required for static games.
C. does not impact the outcome of the game, since
Managerial Economics mcHW13: Chapter 15 (Perloff/Brander)
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. A person who does not own a motorcycle but often ride on her friends' and does not reveal this to h
Mod 2 L8 Ch 11
Oligopoly and Monopolisti c Competi ti on
I.
Intro Managerial Problem
a. What is the managerial problem of oligopoly and monopolistic competition?
i. If only one company receives a government subsidy, how can it gain competitive
advantage?
Chapter 8
Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets
Market Structure describes the competitive environment. There are different market
structures. For example:

The Perfectly Competitive Markets
Monopoly
Monopolistic
CHAPTER 10 PRACTICE PROBLEMS
ANSWERS
1. Two executives were arrested by authorities for embezzling money from their firm. Short of a
confession, the prosecutor only had enough evidence to put them away for 10 years. Given a
confession, however, she was ce
Chapter 10
Game Theory: Inside Oligopoly
Oligopoly is a market structure with a relatively few large firms and many consumers.
The product offered by firms can be identical or differentiated.
Duopoly is an industry with 2 firms.
Oligopolists act independe
ME 305
HW#4
Instructor: Vahe Lskavyan
Due by 5pm, Thursday, March 1st. Slide under my office door if I am out.
1.
TRUE or FALSE? EXPLAIN! DRAW WHEN APPROPRIATE!
a. The combinations of inputs that produce a given level of output are depicted by Indifferenc